What Is Game Theory?

Game theory is a branch of applied mathematics and economics that studies situations where players choose different actions in an attempt to maximize their returns. John von Neumann was the first to expand on early mathematical analysis of probability and chance into game theory in the 1920’s. His work was used by the military during World War II, and then later by the RAND Corporation to explore nuclear strategy. In the 1950s, John Nash, popularized in the film A Beautiful Mind, was an early contributor to game theory. His “Nash Equilibrium,” which helps to evaluate player strategies in non-cooperative games. Game theory is now used in many diverse academic fields, ranging from biology and psychology to sociology and philosophy. ...

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